Guide to Become a Member of the Exchange
Membership can be obtained in two different ways...

    1.  Fresh Membership
    2.  Through Nomination/transfer 

The Exchange may award fresh membership to the applicant subject to approval of the Board and upon compliance of required formalities. However, a member of the Exchange may transfer his membership to any other nominee under Section 20(a)(b)(c) of the Articles of Association of the Exchange. The price of a fresh membership of Islamabad Stock Exchange is fixed at Rs.7.50 million. However, in case of nomination or transfer the fee is determined by the market forces which is currently ranging from Rs.4.50 million to Rs.5.00 million.

Any individual who complies with the following eligibility criteria as set forth in Article 7 of the Articles of Association can become member of Islamabad Stock Exchange.

1. The applicant is not less than twenty one years of age.

2. He is citizen of Pakistan.

3. He has not been adjudicated as insolvent or has suspended payment or has compounded with his creditors.

4. He has not been convicted of an offence involving fraud or breach of trust.

5. He has not been at any time expelled by this or any other stock exchange.

6. He has not been previously refused admission to membership, unless a period of one year has elapsed since the date of such rejection.

7. He is not a lunatic or a person of unsound mind.

8. He has had the experience in the business of securities for a period of not less than two years provided that the Board may waive this requirement relating to experience in the business of securities if such person, in respect of means, integrity and background, considered by the Board to be otherwise qualified for membership.

9. He is graduate.

10. If he is member of another stock exchange, he possesses a minimum experience of 10 years as a broker.

11. He has paid income tax during the last three years with minimum assessed income of Rs.100,000/.

1. Be a company or a statutory corporation or a body corporate.
2. Have a minimum issued, subscribed and paid up capital of Rs. 5.00 million which minimum limit may be increased by the Directors to be effective after being notified in the official gazette.
3. In the case of statutory corporation or body corporate to which Section 183 of the Companies Ordinance 1984 applies, the membership application shall be accompanied by a 'no objection' from the Federal or Provincial Government as the case may be.

A prescribed membership form is available from the office of the Exchange. Individual/Corporate  Membership Forms are given on the last pages.

Individual Membership

   a) Three passport size photographs.

   b) Copy of National Identity Card

   c) Pay order of RS. 7.5 million in favour of Islamabad Stock Exchange being Membership             Admission Fee (Refundable in case if Membership is refused).

   d) Affidavit on Rs. 10/- non-judicial Stamp Paper regarding eligibility criteria.

   e) Copies of Educational Degrees (Only for graduation and higher levels).

   f) Copies of income assessment orders for the last three consecutive years

  g) Evidence (s) towards Stock Market experience.

  h) A Bank reference.

Corporate Membership 

1.   Membership application on the prescribed form.

2.   Photocopy of Certificate of incorporation.

3.   Photocopy of Certificate of Commencement of business (for public company).

4.  Audited accounts of Company for the last three years (if the company is in operation for such period).

5.  Certificate for the auditors regarding the Shareholders' Equity.

6.  Certified copy of resolution of the Directors of company authorizing a person to apply for the membership of the Exchange on behalf of the company (Annex-A)

7.  Certified copy of the list of Directors of the company along-with their complete addresses and number of shares held by each of them in the capital of the company.

8.  Certified copy of the list of Directors specifying their directorship in other companies.

9.  Certified copy of the resolution of the Directors of company nominating one of its Directors to represent the Corporate Membership at the ISE in all respects (Annex-B)

           Note: The nominee Director of the company shall not be a member of the ISE nor shall be a nominee of any other Corporate Member of the Exchange.

10. An Undertaking as per specimen (Annex-C)

11. An affidavit by the Chief Executive of the company in the prescribed form (Annex-D)

12. Documents in support of academic qualifications and stock market experience of al-least two Directors (including the Chief Executive).

13. Documents in support of payment of Income Tax (I.T.30s) and wealth tax assessment of at-least two directors for the last three consecutive years.

14. Five copies of Memorandum & Articles of Association of Company.

15. Bank Reference (to be obtained directly from the Bankers of the company named in the membership application).

16. Photocopies of NIC of all Directors of the company.

17. Cheque/Pay Order of Rs. 4,500,000 (Rupees 4.5 million) in favour of Islamabad Stock Exchange (Guarantee) Limited. The balance membership fee of Rs. 3,000,000/- shall be required to be deposited once the letter of intent has been issued to Applicant by the Exchange.

18. Investment portfolio of the company (if applicable);

            i)     as on the date of application;

            ii)    average portfolio for the last three years;

            iii)   clients investments handled during the last three years.

19. Pattern of Shareholding.

20. List of Company Officials;

            i)     Chief Executive

            ii)    Secretary

            iii)   Chief Accountant

            iv)   Auditors

22. Any other document(s) as may be found necessary in the process of Membership application.

After receiving the application form duly filled in along with requisite documents, the case is put up before the Membership Committee for consideration. The Membership Committee undertakes detailed scrutiny of documents and  interviews the applicant/transferee. After having been satisfied itself that the documents are in order and applicant complies with the membership criteria, the Membership Committee refers its recommendation to the Board for approval. The Board has powers to reject any application for admission without assigning any reason thereto.

A member may open his brokerage house in the Exchange’s premises subject to availability of rooms in the Exchange’s building. A member may also open his branch office out-side the building with the prior approval of the Exchange.

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